Hints and tips:
...Nippon offered $55 a share in cash for US Steel in December, months after the American company had rebuffed a lower offer from US-based Cleveland-Cliffs....
...There is also the fact that Cleveland Cliffs could pay far less than Nippon, even using its own shares....
...Shares of US Steel soared in pre-market trading a day after the steel producer rejected a $7.3bn bid from rival Cleveland-Cliffs....
...Cleveland-Cliffs made an offer last week to buy US Steel for $10bn in cash and stock, including assumed debt....
...US Steel on Sunday rejected a $7.3bn acquisition bid from rival Cleveland-Cliffs, the largest North American producer of flat-rolled steel, hours after it said it had hired financial advisers to evaluate...
...Ohio-based Cleveland-Cliffs steel was awarded up to $500mn to replace one of its Middletown blast furnaces to be “hydrogen-ready”, among other measures....
...They would have preferred a transaction with Cleveland-Cliffs....
...To that end, Ohio’s Cleveland-Cliffs, headed by Goncalves, has announced a $10bn unsolicited cash-and-stock offer for US Steel....
...The deal has been in the works since December, when Nippon offered $55 a share in cash for the company, months after it had rebuffed a lower offer from US-based Cleveland-Cliffs....
...Cleveland-Cliffs’ share price is up 42 per cent from five years ago....
...North American steel companies have undergone a wave of consolidation in recent years dominated by four players: Cleveland-Cliffs, US Steel, Nucor and Steel Dynamics....
...Chief executive Lourenco Goncalves told Bloomberg that Cleveland-Cliffs would consider a bid “in the $30s” and would have the United Steelworkers’ backing....
...Cleveland-Cliffs was founded in 1847 to mine iron ore in the Great Lakes region....
...It comes after much of the country’s steel industry has consolidated, leaving Cleveland-Cliffs, Nucor, Steel Dynamics and US Steel as the four large players....
...US Steel had been considering strategic options from earlier this year and in August it rejected a $7.32bn acquisition bid from rival Cleveland-Cliffs. Read more here...
...The union, however, favoured an earlier, lower, bid from another US steelmaker, Cleveland-Cliffs, which it views as more union-friendly....
...The Pittsburgh-based company rejected a $7.3bn approach from rival Cleveland-Cliffs, and seemed to shrug when the privately held Esmark followed with a $10bn proposal....
...“They’re probably going to shrink in the short-term but they aren’t going to fall off a cliff.” Stephanie Stacey...
...Capitalism reins in the sale of US Steel In August, Cleveland-Cliffs wrapped its unsolicited bid for US Steel in an American flag....
...The move by Esmark comes a day after US Steel rejected a $35-per-share cash-and-stock offer bid from Cleveland-Cliffs, the largest North American producer of flat-rolled steel....
...US Steel, formed in 1901, yesterday rejected a $7.3bn acquisition bid from rival Cleveland-Cliffs, hours after it said it had hired financial advisers to evaluate offers for the company....
...Nippon Steel’s offer, a bet on a surge in US manufacturing driven by subsidies, was nearly double the offer from Cleveland-Cliffs in August....
...Nippon’s offer for US Steel — nearly double that of US bidder Cleveland-Cliffs in August — is one example of a strategic buyer taking advantage of that window while it is open....
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